Energy Transition

We recognise as a Company engaged in the oil and gas industry, we have a responsibility to be an active participant in the UK’s energy transition towards net zero

The production and use of hydrocarbons is expected to remain an important part of the energy mix for the foreseeable future.  Reducing our emissions is perhaps the key component to ensuring we are able to deliver the smallest possible environmental footprint from our future operations.  This imperative has been embodied and extended most recently in the North Sea Transition Deal, an agreement between the UK oil and gas industry and the government to deliver an orderly energy transition.  

The North Sea Transition Deal recognises the critical role the industry will have in maintaining the UK’s energy security during the transition to the target of carbon net zero by 2050 and that oil and gas will continue to remain an important part of the energy mix, including under net zero.  Through the Deal, the oil and gas sector and government are seeking to work together over the long term to deliver the skills, innovation and new infrastructure required to decarbonise North Sea production.  One of the key initiatives at the heart of the various plans to ensure an orderly energy transition is the electrification of offshore oil and gas facilities, like the FPSO that is planned to be used on our Greater Buchan Area (GBA) development project.

Following an extensive evaluation of the different potential development options for the GBA, it was determined that the preferred solution involved the redeployment of an FPSO.  This solution benefits from being the lowest cost development option and the one that results in the lowest full-cycle carbon footprint of all the options evaluated.  This is driven by the ability to re-use existing infrastructure that can be located directly at the Buchan field, with the FPSO being made ‘electrification-ready’ upon its redeployment.  By doing so, it is possible for the vessel to be connected to one of the anticipated floating wind power developments that are intended to be located in close proximity to the GBA following the recent Innovation and Targeted Oil & Gas licence awards made by Crown Estate Scotland.  As a consequence, the GBA development solution aligns with the regulator’s obligations to maximise economic recovery of reserves and assists with achieving the UK government’s net zero target.